Deals

23andMe deal should never be cloned

20 Sep 2024

The genetic-test firm’s entire board, save founder Anne Wojcicki, resigned in frustration with her stalled takeover bid. The offer is perhaps the least-worst detail. The once $6 bln company should never have gone public and super-voting stock primed it for a governance implosion.

KKR outmanoeuvres Bain in $4 bln Japan showdown

20 Sep 2024

The two buyout giants are tussling over IT specialist Fuji Soft after Bain dangled a potentially higher offer. But KKR has found a clever way to put itself ahead without raising its price. Future buyers should take note: in a hot market like Japan, creative tactics will be needed.

Bank mega-M&A gets tantalisingly close in Europe

19 Sep 2024

UniCredit, the $68 bln Italian lender, grabbed a 9% stake in Germany’s $16 bln Commerzbank. In this Viewsroom podcast, Breakingviews columnists argue that a full merger makes financial sense, but potentially not for unions or the under-fire government in Berlin.

Axel Springer split gives M&A freedom to news unit

19 Sep 2024

The company’s media assets, like Bild and Politico, will go to a group including CEO Mathias Döpfner in a $15 bln breakup, while KKR gets the classifieds division. The buyout firm has the most valuable bit, but mogul Döpfner gains a debt-free balance sheet with an eye on deals.

BlackRock’s $30 bln AI fund is Big Tech’s backstop

18 Sep 2024

The asset manager will team with Microsoft to invest in AI infrastructure. It’s a way to bolster tech firms’ capacity to keep up with the $1 trln needed for data centers alone, akin to governments tapping private funds to build roads. Thing is, that assumes AI is just as crucial.

2024’s biggest US software LBO has some good omens

17 Sep 2024

Blackstone and Vista Equity Partners are close to an $8 bln deal for Smartsheet that would probably tap loans backed by revenue, not cash flow. That has bitten Vista before. But with style drift more contained and peers like Thoma Bravo eyeing IPOs, past might not be prologue.

Commerzbank’s UniCredit defences are built on sand

17 Sep 2024

German politicians fret that a key domestic lender may end up under foreign control, now its Italian rival holds 9%. Berlin’s 12% stake complicates that. But it has no legal mechanism to block a deal the ECB may support, and Deutsche Bank makes for a problematic white knight.

Evan Spiegel is the skunk at the founder’s party

13 Sep 2024

The Snap architect blamed his $16 bln social media network’s stock slump on tepid ad growth. Self-awareness is a positive sign, and attention to detail is a creative plus. But after 13 years it might be time for Spiegel to seek outside help.

UK dials up fresh signal of telco M&A optimism

13 Sep 2024

British regulators will OK Vodafone’s merger with CK Hutchison’s Three without structural remedies. Previous such deals have ended up blocked or, like Orange-MásMóvil, subject to disposals. It flags that new investment is more key than antitrust worries over consumer prices.

Some US Steel appeal would survive busted deal

12 Sep 2024

The 123-year-old company’s value has dropped as chances rise that US authorities will block its $15 bln sale to Nippon. Without the merger, the costly transition to new furnaces would be left to boss David Burritt. There’s no substitute for a control premium, but upside lingers.

Germany gives DSV a sweet deal on freight takeover

12 Sep 2024

The Danish group will acquire Schenker, the logistics arm of indebted German railway operator Deutsche Bahn, for 14 bln euros, beating a higher CVC offer. Berlin may be hoping that an industry player will be a more stable owner. But DSV’s share price jump shows it got a bargain.

Buyout barons’ dirty secret shows hard times ahead

12 Sep 2024

Since 2013, 47% of the value created by private-equity dealmakers came from selling companies at higher multiples than they paid. That boon is fading now that valuations seem stretched. KKR, Blackstone and others face lower returns or fights over high-growth targets instead.

Orcel uses hammer to unpick UniCredit-Commerz lock

11 Sep 2024

The Italian bank’s CEO is eyeing a full takeover of the $16 bln German lender. Andrea Orcel is taking a blunter route than past M&A talks between the two banks, which used structures like a Frankfurt-listed subsidiary to appease Berlin. His way is more rewarding, but riskier.

Fed’s Basel climbdown leaves foot on rules ladder

10 Sep 2024

Facing intense industry opposition, top US regulator Michael Barr proposed softer new capital rules for lenders like JPMorgan. There’s good reason to revisit many pain points. But despite shaving maybe $100 bln off the burden on the biggest banks, a philosophical shift remains.

Hedgie’s magazine deal is hazy UK media buy signal

10 Sep 2024

Paul Marshall’s 100 mln pound bid for the Spectator values the right-wing publication at over 40 times EBITDA. His generosity will encourage seller Jeff Zucker and partners they can find a similarly blithe buyer for the Telegraph. But the market for political clout has limits.

AngloGold’s mid-size miner pounce may set a trend

10 Sep 2024

The US-listed group is paying $2.5 bln for Egypt-focused rival Centamin. High gold prices make it easier for bigger fish to bulk up via share-based deals. Rising production costs and future price volatility suggest more relative minnows could say yes to an adequate premium.

US Nippon Steel rebuff would be cruel and kind

10 Sep 2024

Washington may block the Japanese company's $15 bln takeover of US Steel. It'd be a blow to Nippon's plans to offset growth challenges at home and overcapacity from China. But it has other options that may eventually yield better returns than it could extract from its US target.

Murdoch dissident chases another unpromising lead

9 Sep 2024

Hedge fund Starboard wants to rid $15 bln News Corp of super-voting stock that gives the media mogul and his family de facto control. Other founders have relented elsewhere. Narrowing the Wall Street Journal owner’s bad-governance discount, however, will be as elusive as ever.

Vinted’s price markup rests on limitless growth

9 Sep 2024

Private equity shop TPG may buy a stake in the second-hand clothing site at a $5.5 bln valuation, the FT reported. It implies a much steeper multiple than the main listed peer. That may be fair if rapid growth persists, but the performance of other marketplaces are a red flag.

China brokerage deal has more bark than bite

9 Sep 2024

The merger of Guotai Junan and embattled rival Haitong will create the country’s largest brokerage with assets of $225 bln. The overcrowded sector needs consolidation, but this deal probably won’t aid Beijing’s goal to foster a squad of world-beating investment banks.